Captain Lila was one of Captain Madison's allies and co-pirate leader. She was a practitioner of dark magic. She mocked the old Pirate Leaders for their reliance on trials and obsession with writing memoirs. She had a violent streak, happy to kill on a whim, and would anxiously use blades to scratch tables she sat at.
The changes that the new leaders made had detrimental effects on the economy of Mêlée Island. Due to Lila's dark magic, voodoo was going out of fashion too, and so business at The International House of Mojo suffered.
She joined Madison and Trent on the quest to find the secret of Monkey Island, which led them into conflict with both Guybrush Threepwood and LeChuck.
They required LeChuck's map to find the secret, and set a trap for him on Monkey Island. However, Threepwood sprung the trap first. They recruited Threepwood to get the map for them, as he was able to board LeShip as part of its crew, while voodoo magic prevented them from doing so. They intended to double-cross Threepwood as soon as his usefulness was over.
After acquiring what they needed, Lila threw Threepwood from the top of the cliff on Monkey Island.
Eventually Madison's crew joined forces with LeChuck. After stealing it from Threepwood, they took the secret to the bowels of Monkey Island under the Giant Monkey Head in order to complete the dark ritual required to open the chest it was contained in.
While there, Lila double-crossed Madison, and killed her, taking command herself. She also turned in LeChuck. She and LeChuck fought over the secret of Monkey Island, leaving Threepwood able to claim it.